I'm actually surprised that TestFlight was available for this, since I recently worked on a private app and did a bit of research into how to distribute it - everything I read implied that TestFlight apps will be reviewed by Apple employees and must be apps that intend to eventually be distributed more widely (e.g. beta versions). I got the impression that an app for family or friends that wasn't set up with a plan for release at some point would be rejected.
You can distribute to "internal" testers (people you add to your developer account) without any review process. The app is only reviewed if you want to distribute to external testers.
Based on the blog post, it was created February 2020 where the rules you mentioned was not enforced yet. But around that time I believe you can also export an ipa file so anyone can install but you have to include your target’s UUID in the app signature.